FACTBOX-NY Harbor oil network mends; Bayway seen shut 2-3 weeks

the weekend, a source

Monday, 5 Nov 2012 | 11:41 PM ETReuters

SHARES

(Updates with Phillips 66 Bayway) Nov 5 (Reuters) - The New York Harbor oil trading hub showed further signs of recovering from Hurricane Sandy as more terminals and truck racks resumed operations with commercial power, and tankers plied key waterways. But the outlook for supplies dimmed as Phillips 66 confirmed that the region's second-largest refinery, the 238,000 barrel-per-day Bayway plant in New Jersey, would likely be shut for another two to three weeks as repairs are carried out, primarily on electrical equipment damaged by saltwater, as Reuters reported earlier. The outlook for the area's other refiner, its biggest oil depot and some terminals in the hard-hit Linden, New Jersey, area also remained uncertain almost a week after Sandy dealt an unprecedented blow to the country's biggest and most important fuel trading center. On the streets of New York and New Jersey, fuel shortages and lengthy gasoline lines showed signs of easing after the military rushed 450,000 gallons of fuel to the region, the first of a 24 million gallon dispatch. The government tapped 2 million gallons of its heating fuel reserve and New Jersey instituted rationing by even-odd license plate numbers in a dozen counties. Heating oil supplies were tight in the region, just days before temperatures were expected to drop to below freezing. For a news story see

KEY DEVELOPMENTS ON MONDAY:

* PHILLIPS 66 said it expects to resume ``normal operations'' at its 238,000 bpd Bayway refinery in Linden, New Jersey, in two to three weeks. The plant has been shut since Oct. 29, and sources had said it appeared to sustain serious damage to the electrical equipment after Sandy's 14-foot storm surge flooded it. Phillips also confirmed it had spilled some 7,700 gallons of fuel. Its terminal at Tremley Point, New Jersey, is expected to be operating at a limited capacity by the end of November. Phillips 66 also said it had restored the refinery's capability to pump existing refined product inventory to the terminal, repaired the refinery's marine dock in order to receive barge shipments of fuels and made arrangements with third-parties to supply fuel to the refinery and terminal through pipelines and marine transport.

* COLONIAL PIPELINE said its Linden, New Jersey hub, the terminus of the 825,000 bpd fuel line from the Gulf of Mexico, was still sending fuel out to seven of its 20 customer terminals, with an additional five ``scheduled to resume operations this week.'' It said commercial power remains stable and emergency generators will stay on site until a new storm front due on Wednesday passes.

* BUCKEYE PIPELINE said its Linden line was able to receive fuel from all existing locations and that Colonial Pipeline, Harbor Pipeline and Kinder Morgan's Carteret terminal had all resumed operating into Linden.

* KINDER MORGAN said it resumed limited operations at its Carteret and Perth Amboy terminals in New Jersey, with portable generators at both sites, as well as on Staten Island, and limited inbound and outbound product movement. It has resumed limited marine operations at Carteret and hopes to do so soon for Perth Amboy and Staten Island.

* COAST GUARD removed restrictions along the Arthur Kill waterway, which separates Staten Island from New Jersey, as long as vessels move slowly along its waters, a Coast Guard agent said. The waterway saw its first oil tanker in a week on Sunday, with the 50,000-tonne Glory Express heading through the channel toward the Kinder Morgan terminal in Carteret. The Arthur Kill is the site of a major cleanup after flooded tankers at Motiva Enterprises' Sewaren, New Jersey, terminal spilled diesel into the water.

* HESS CORP said on Sunday that power was also partially restored Saturday night at its 70,000 barrel-per-day refinery in Port Reading, New Jersey. The company said it will need full power before restarting the plant and that it would take ``several days'' to bring in-plant utility systems back online, which must be done before any restart. It resumed marine operations at the Brooklyn terminal, while those in Bayonne, Edgewater, Newark, Roseton and Woodbridge remain suspended.

* NUSTAR ENERGY LP said it hoped to reestablish pipeline and barge deliveries at its Linden, New Jersey, marine and storage terminal ``very soon'' and that all eight truck racks at the site were operational. It previously said the 4.1-million-barrel terminal was severely damaged by Sandy.

* IMTT BAYONNE's 16 million barrel oil terminal, the biggest in New York Harbor with about one-fifth of the total capacity, is partially operational but still ``coming back online'' after losing power in the storm, said terminal manager Richard Fisette.

* DELTA AIR LINES INC's Monroe Energy 185,000 bpd refinery in Trainer, New Jersey, resumed normal operations and is expected to have all units at full rates after a lengthy maintenance turnaround. It was not shut during Sandy. Below is a list of refineries, fuel pipelines and ports impacted by the storm:

COMPANY PLANT CAPACITY STATUS

(bpd)

PBF Energy Delaware City, 190,000 Operations normal.

Delaware

PBF Energy Paulsboro, New 180,000 Operations normal.

Jersey

Hess Corp Port Reading, New 70,000 Power partially restored

Saturday night. Jersey

Philadelphia Philadelphia, 330,000 Company said on Nov. 2 it

would be back to normal schedules

Energy Solutions Pennsylvania this weekend after delays in

crude deliveries.

Monroe Energy Trainer, 185,000 All units running normally

after turnaround, full rates seen

Pennsylvania within several days. Phillips 66 Linden, New Jersey 238,000 Shut down. Could be weeks

away from restarting due to heavy damage from salt-water flooding, source familiar said. Phillips 66 says power has been restored, but has not provided timeline for restart.

Imperial Oil Ltd Sarnia, Ontario 121,000 Returning to normal service

as of Oct. 31 after power outage. NEW YORK HARBOR OIL TERMINALS STILL SHUT BY SANDY: